Digi International Reports Third Fiscal Quarter 2014 Results

Digi International® Inc. (NASDAQ:DGII)(www.digi.com)
reported revenue of $47.9 million for the third fiscal quarter of 2014,
compared with $48.8 million for the third fiscal quarter of 2013, a
decrease of $0.9 million, or 1.9%. Net loss was $0.1 million, or $0.00
per diluted share, in the third fiscal quarter of 2014 compared to net
income of $1.5 million, or $0.06 per diluted share, in the year ago
comparable quarter.

“We met our guidance for the third fiscal quarter and we are reiterating
our previously announced annual guidance,” said Joe Dunsmore, President
and Chief Executive Officer.

Net loss in the third fiscal quarter of 2014 was reduced by the
reassessment of certain state research and development tax credits and
our ability to realize these credits in the future. This resulted in a
tax benefit of $0.3 million, or $0.01 per diluted share.

Below is a table setting forth certain GAAP and non-GAAP results:

GAAP Results

(in thousands, except per share data)

Q3 2014

Q3 2013

YTD 2014

YTD 2013

Total Revenue

$

47,885

$

48,824

$

141,089

$

144,012

Operating (Loss) Income

$

(280

)

$

1,892

$

(301

)

$

3,983

Net (Loss) Income

$

(101

)

$

1,528

$

1,325

$

3,758

Net Income per Diluted Share

$

0.00

$

0.06

$

0.05

$

0.14

Non-GAAP Results*

(in thousands, except per share data)

Q3 2014

Q3 2013

YTD 2014

YTD 2013

Operating (Loss) Income

$

(280

)

$

1,892

$

(220

)

$

5,471

Net (Loss) Income

$

(362

)

$

1,416

$

(203

)

$

4,093

Net (Loss) Income per Diluted Share

$

(0.01

)

$

0.05

$

(0.01

)

$

0.16

* A table with a detailed reconciliation to non-GAAP information is
provided at the end of this earnings release.

Business Results for the Three Months Ended
June 30, 2014

Revenue from our hardware products for the third fiscal quarter of 2014
was $43.3 million, compared to product revenue of $42.3 million for the
third fiscal quarter of 2013, an increase of $1.0 million or 2.3%.
Revenue from growth hardware products was $21.7 million in the third
fiscal quarter of 2014, compared to $20.9 million in the third fiscal
quarter of 2013, an increase of $0.8 million or 3.9%. Revenue from
mature hardware products was $21.6 million in the third fiscal quarter
of 2014, compared to $21.4 million in the third fiscal quarter of 2013,
an increase of $0.2 million or 0.8%.

Revenue from our service offerings, which are part of our growth
portfolio, was $4.6 million in the third fiscal quarter of 2014,
compared to $6.5 million in the year ago comparable quarter, a decrease
of $1.9 million or 29.4%. The decrease in services revenue from the year
ago comparable quarter primarily is due to customer deferral or
cancellation of certain projects and the inability to replace the loss
of revenue from these projects in the third quarter.

Revenue in North America was $28.0 million in the third fiscal quarter
of 2014 compared to $30.4 million in the third fiscal quarter of 2013, a
decrease of $2.4 million or 8.0%. Revenue in EMEA (Europe, Middle East
and Africa) was $11.8 million in the third fiscal quarter of 2014
compared to $11.4 million in the comparable quarter a year ago, an
increase of $0.4 million or 3.9%. Revenue in the Asian countries was
$6.7 million in the third fiscal quarter of 2014 compared to $5.9
million in the third fiscal quarter of 2013, an increase of $0.8 million
or 13.0%. Latin American revenue was $1.4 million in the third fiscal
quarter of 2014 compared to $1.1 million in the comparable quarter a
year ago, an increase of $0.3 million or 24.6%.

Gross profit was $22.1 million in the third fiscal quarter of 2014
compared to $24.7 million in the same period of the prior year, a
decrease of $2.6 million or 10.4%. The gross margin was 46.3% in the
third fiscal quarter of 2014 compared to 50.6% in the third fiscal
quarter of 2013. The decrease resulted primarily from lower gross
margins from our services offerings due to lower than anticipated CRM
revenue and a resulting underutilization of consulting labor that had
been retained for the expected demand for these services, as well as
hardware product mix.

Total operating expenses in the third fiscal quarter of 2014 were $22.4
million, or 46.8% of revenue, compared to $22.8 million, or 46.7% of
revenue, in the third fiscal quarter of 2013.

Digi reported an operating loss of $0.3 million, or 0.6% of revenue, in
the third fiscal quarter of 2014 compared to operating income of $1.9
million, or 3.9% of revenue, in the third fiscal quarter of 2013.

Net loss was $0.1 million in the third fiscal quarter of 2014, or $0.00
per diluted share, compared to $1.5 million, or $0.06 per diluted share,
in the third fiscal quarter of 2013. Net income includes a discrete tax
benefit of $0.3 million, or $0.01 per diluted share, resulting from the
reassessment of certain state research and development tax credits and
our ability to realize these credits in the future.

Earnings before interest, taxes, depreciation and amortization in the
third fiscal quarter of 2014 were $1.4 million, or 3.0% of revenue,
compared to $3.8 million, or 7.8% of revenue, in the third fiscal
quarter of 2013.

Business Results for the Nine Months Ended June
30, 2014

For the nine months ended June 30, 2014, Digi reported revenue of $141.1
million compared to revenue of $144.0 million for the nine months ended
June 30, 2013, a decrease of $2.9 million or 2.0%.

Revenue from our hardware products for the first nine months of fiscal
2014 was $125.9 million, compared to $128.5 million in the first nine
months of fiscal 2013, a decrease of $2.6 million or 2.0%. Revenue from
growth hardware products for the first nine months of fiscal 2014 was
$64.4 million, compared to $64.7 million for the first nine months of
fiscal 2013, a decrease of $0.3 million or 0.5%. Revenue from mature
hardware products was $61.5 million for the first nine months of fiscal
2014, compared to $63.8 million in the first nine months of fiscal 2013,
a decrease of $2.3 million or 3.6%.

Revenue from our service offerings was $15.2 million for the first nine
months of fiscal 2014, or 10.8% of revenue, compared to $15.5 million
for the first nine months of fiscal 2013, or 10.8% of revenue, a
decrease of 1.9%.

For the nine months ended June 30, 2014, Digi reported net income of
$1.3 million, or $0.05 per diluted share, compared to net income for the
nine months ended June 30, 2013 of $3.8 million, or $0.14 per diluted
share. Non-GAAP net loss for the first nine months of fiscal 2014 was
$0.2 million, or $0.01 per diluted share, compared to Non-GAAP net
income of $4.1 million, or $0.16 per diluted share, in the first nine
months of fiscal 2013. Please refer to the table reconciling net income
and net income per diluted share to non-GAAP net (loss) income and net
(loss) income per diluted share that is provided later in this earnings
release.

Digi’s cash and cash equivalents and marketable securities balance,
including long-term marketable securities, was $100.6 million at June
30, 2014, a decrease of $5.1 million from September 30, 2013 primarily
resulting from repurchases of common stock. Please refer to the
Condensed Consolidated Statements of Cash Flows that are included in
this earnings release for additional cash flow details. Digi’s current
ratio was 7.1 to 1 at June 30, 2014 and 7.0 to 1 at September 30, 2013.

Third Fiscal Quarter 2014 Business Highlights

Digi continues to work with industry-leading manufacturers to create
innovative next generation connected product solutions. Examples in Q3
include:

Watkins, the world’s largest manufacturer of hot tubs-sold under the
HotSpring® and Caldera® brands-introduced its new and innovative
Connextion™ remote monitoring service. This product allows its dealers
and customers alike to monitor and control spa functions from
virtually anywhere in the world via a mobile device and/or a personal
computer. The solution includes Digi gateways, Device Cloud by
Etherios and custom application development and professional services
from Etherios.

A leading manufacturer of diagnostic healthcare solutions announced a
next generation communications platform for its diagnostic testing
device, which utilizes Digi’s TransPort cellular routers along with
Device Cloud by Etherios™.

In Q3, Digi experienced greater demand for its RF product line, which
includes its XBee® brand of embedded modules and gateways.

A global company that produces agricultural irrigation solutions has
chosen the XBee DigiMesh® to enable communications between irrigation
control units and distributed GPS technology. The solution includes
cellular communication to provide data to a web application that adds
intelligence to watering schedules and patterns.

Digi had a number of noteworthy wins for its TransPort® line of cellular
routers during Q3 including:

A Fortune 200 corporation and leader in natural gas distribution in
the U.S. chose the Digi TransPort® WR21 to replace legacy 2G routers
throughout its data network for real-time asset monitoring. The
solution enables flow rate metering across its natural gas network.

Additionally, Digi strengthened its cloud solutions presence
internationally by establishing a key alliance with Kerensen Consulting,
the first Salesforce Platinum Partner in EMEA. The alliance
integrates Device Cloud by Etherios™ and The Social Machine® in
Kerensen’s product portfolio, allowing it to offer best-in-class CRM
services to its customers already using the Salesforce platform.
Together, the alliance combines Digi and Etherios’ industry-leading
end-to-end M2M solutions with Kerensen’s consulting and integration
expertise and leading CRM market presence in the Europe, Middle East and
Africa (EMEA) region.

Reconciliation of Operating (Loss) Income to Non-GAAP Operating
(Loss) Income

(In thousands of dollars)

Three months ended June 30,

Nine months ended June 30,

2014

2013

2014

2013

% of total

% of total

% of total

% of total

revenue

revenue

revenue

revenue

Operating (loss) income

$

(280

)

(0.6

)%

$

1,892

4.0

%

$

(301

)

(0.2

)%

$

3,983

2.8

%

Legal settlement

—

—

%

—

—

%

—

—

%

1,525

1.1

%

Restructuring reserve

—

—

%

—

—

%

81

0.1

%

(37

)

—

%

Non-GAAP operating (loss) income*

$

(280

)

(0.6

)%

$

1,892

4.0

%

$

(220

)

(0.2

)%

$

5,471

3.8

%

*Percentages presented may not add due to use of rounded numbers.

Reconciliation of Net Income and Net Income per Diluted Share

to Non-GAAP Net (Loss) Income and Net (Loss) Income per Diluted
Share

(In thousands of dollars, except per share amounts)

Three months ended June 30,

Nine months ended June 30,

2014

2013

2014

2013

Net (loss) income and net income per common share, diluted

$

(101

)

$

0.00

$

1,528

$

0.06

$

1,325

$

0.05

$

3,758

$

0.14

Legal settlement, net of taxes

—

—

—

—

—

—

991

0.04

Restructuring reserve, net of taxes

—

—

—

—

53

—

(24

)

—

Discrete tax benefits for extended research and development tax
credits, re-measurement and reversal of certain tax reserves as a
result of a federal income tax audit, reassessment of state research
and development tax credits, and expiration of statute of
limitations in various tax jurisdictions

(261

)

(0.01

)

(112

)

0.00

(1,581

)

(0.06

)

(632

)

(0.02

)

Non-GAAP net (loss) income and net (loss) income per diluted share *

$

(362

)

$

(0.01

)

$

1,416

$

0.05

$

(203

)

$

(0.01

)

$

4,093

$

0.16

Diluted weighted average common shares

25,274

26,114

25,965

26,323

*Earnings per share presented are calculated by line item and
certain amounts may not add due to use of rounded numbers.

Reconciliation of Net Income to Earnings Before Interest,
Taxes, Depreciation and Amortization

(In thousands of dollars)

Three months ended June 30,

Nine months ended June 30,

2014

2013

2014

2013

% of total

% of total

% of total

% of total

revenue

revenue

revenue

revenue

Total revenue

$

47,885

100.0

%

$

48,824

100.0

%

$

141,089

100.0

%

$

144,012

100.0

%

Net (loss) income

(101

)

(0.2

)%

1,528

3.1

%

1,325

0.9

%

3,758

2.6

%

Interest income, net

(35

)

(0.1

)%

(58

)

(0.1

)%

(127

)

(0.1

)%

(123

)

(0.1

)%

Income tax (benefit) provision

(213

)

(0.4

)%

363

0.8

%

(1,454

)

(1.0

)%

851

0.6

%

Depreciation and amortization

1,762

3.7

%

1,968

4.0

%

5,481

3.9

%

5,877

4.1

%

Earnings before interest, taxes, depreciation and amortization*

$

1,413

3.0

%

$

3,801

7.8

%

$

5,225

3.7

%

$

10,363

7.2

%

*Percentages presented may not add due to use of rounded numbers.

Fiscal 2014 Guidance

For the full fiscal year 2014, Digi reiterates its previously announced
guidance for annual revenue in a range of $188.0 million to $194.0
million with a most likely annual revenue of approximately $191.0
million. Digi also reiterates its previously announced guidance for
annual net income per diluted share in a range of $0.06 to $0.12, with a
most likely annual net income per diluted share of $0.09.

Third Fiscal Quarter 2014 Conference Call
Details

Digi invites all those interested in hearing management's discussion of
its quarter, on Thursday, July 24, 2014 after market close at 5:00 p.m.
EDT (4:00 p.m. CDT), to join the call by dialing (866) 713-8563 and
entering passcode 48389126. International participants may access the
call by dialing (617) 597-5311 and entering passcode 48389126. A replay
will be available approximately two hours after the completion of the
call, and for one week following the call, by dialing (888) 286-8010 for
domestic participants or (617) 801-6888 for international participants
and entering access code 89711257 when prompted. Participants may also
access a live webcast of the conference call through the investor
relations section of Digi's website, www.digi.com.
The webcast will remain on our website for one week after the live
session is completed.

A copy of this earnings release can be accessed through the financial
releases page of the investor relations section of Digi’s website at www.digi.com.

Digi International is the M2M solutions expert, combining products and
services as end-to-end solutions to drive business efficiencies. Digi
provides the industry’s broadest range of wireless products, a cloud
computing platform tailored for devices and development services to help
customers get to market fast with wireless devices and applications.
Digi’s entire solution set is tailored to allow any device to
communicate with any application, anywhere in the world. For more
information, visit Digi’s website at www.digi.com,
or call 877-912-3444 (U.S.) or 952-912-3444 (International).

Forward-Looking Statements

This press release contains forward-looking statements that are based
on management’s current expectations and assumptions.These
statements often can be identified by the use of forward-looking
terminology such as "anticipate," "believe," "estimate," "may," "will,"
"expect," "plan," "project," "should," or "continue" or the negative
thereof or other variations thereon or similar terminology. Among other
items, these statements relate to expectations of the business
environment in which the company operates, projections of future
performance, perceived marketplace opportunities and statements
regarding our mission and vision. Such statements are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions, including risks related to the highly competitive market in
which our company operates, rapid changes in technologies that may
displace products sold by us, declining prices of networking products,
risks associated with the retirement of our CEO announced in April 2014
and the associated transition to a new CEO who has not yet been
appointed, our reliance on distributors and other third parties to sell
our products, delays in product development efforts, uncertainty in user
acceptance of ourproducts, the ongoing shift of our sales
efforts to focus more on the delivery of broader based solutions which
can be a more complex sales process, has not been a historical sales
focus of our company and can involve longer sales cycles than the sale
of our legacy hardware products, the ability to integrate our products
and services with those of other parties in a commercially accepted
manner, potential liabilities that can arise if any of our products have
design or manufacturing defects, our ability to defend or settle
satisfactorily any litigation, uncertainty in global economic conditions
and economic conditions within particular regions of the world which
could negatively affect product demand and the financial solvency of
customers and suppliers, the impact of natural disasters and other
events beyond our control that could negatively impact our supply chain
and customers,the ability to achieve the anticipated benefits
and synergies associated with acquisitions,and changes in our
level of revenue or profitability which can fluctuate for many reasons
beyond our control. These and other risks, uncertainties and assumptions
identified from time to time in our filings with the Securities and
Exchange Commission, including without limitation, our annual report on
Form 10-K for the year ended September 30, 2013 and other subsequent
filings, could cause the company's future results to differ materially
from those expressed in any forward-looking statements made by us or on
our behalf. Many of such factors are beyond our ability to control or
predict. These forward-looking statements speak only as of the date for
which they are made. We disclaim any intent or obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.

Presentation of Non-GAAP Financial Measures

This release includes non-GAAP operating (loss) income and net (loss)
income and net (loss) income per diluted share data, and earnings before
interest, taxes, depreciation and amortization (EBITDA), which is a
non-GAAP measure.

We understand that there are material limitations on the use of
non-GAAP measures.Non-GAAP measures are not substitutes for GAAP
measures, such as operating income or net income, for the purpose of
analyzing financial performance.The disclosure of these measures
does not reflect all charges and gains that were actually recognized by
the company.These non-GAAP measures are not in accordance with,
or an alternative for measures prepared in accordance with, generally
accepted accounting principles and may be different from non-GAAP
measures used by other companies.In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules or
principles.We believe that non-GAAP measures have limitations in
that they do not reflect all of the amounts associated with our results
of operations as determined in accordance with GAAP and that these
measures should only be used to evaluate our results of operations in
conjunction with the corresponding GAAP measures.Additionally,
we understand that EBITDA does not reflect our cash expenditures, the
cash requirements for the replacement of depreciated and amortized
assets, or changes in or cash requirements for our working capital needs.

We believe that providing historical and adjusted operating (loss)
income and net (loss) income and net (loss) income per diluted share
exclusive of legal settlements, restructuring expenses, and reversals of
tax reserves and discrete tax benefits permits investors to compare
results with prior periods that did not include these items.Management
uses the aforementioned non-GAAP measures to monitor and evaluate
ongoing operating results and trends and to gain an understanding of our
comparative operating performance.In addition, certain of our
stockholders have expressed an interest in seeing financial performance
measures exclusive of the impact of matters such as the impact of
decisions relating to taxes and restructuring, which while important,
are not central to the core operations of our business.Additionally,
management believes that the presentation of EBITDA as a percentage of
net sales is useful to investors because it provides a reliable and
consistent approach to measuring our performance from year to year and
in assessing our performance against that of other companies.Management
believes that such information helps investors compare operating results
and corporate performance exclusive of the impact of our capital
structure and the method by which assets were acquired.EBITDA is
used as an internal metric for executive compensation, as well as
incentive compensation for the rest of the employee base, and it is
monitored quarterly for these purposes.

For more information, visit our Web site at www.digi.com,
or call 877-912-3444 (U.S.) or 952-912-3444 (International).

Digi International Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three months ended

Nine months ended

June 30,

June 30,

2014

2013

2014

2013

Revenue:

Hardware product

$

43,303

$

42,330

$

125,852

$

128,484

Service

4,582

6,494

15,237

15,528

Total revenue

47,885

48,824

141,089

144,012

Cost of sales:

Cost of hardware product

21,587

20,579

61,862

60,827

Cost of service

4,149

3,525

12,390

9,025

Total cost of sales

25,736

24,104

74,252

69,852

Gross profit

22,149

24,720

66,837

74,160

Operating expenses:

Sales and marketing

9,859

10,372

30,477

31,060

Research and development

7,253

7,606

21,921

22,798

General and administrative

5,317

4,850

14,659

16,356

Restructuring charges, net

—

—

81

(37

)

Total operating expenses

22,429

22,828

67,138

70,177

Operating (loss) income

(280

)

1,892

(301

)

3,983

Other (expense) income, net:

Interest income

39

58

132

160

Interest expense

(4

)

—

(5

)

(37

)

Other (expense) income, net

(69

)

(59

)

45

503

Total other (expense) income, net

(34

)

(1

)

172

626

(Loss) income before income taxes

(314

)

1,891

(129

)

4,609

Income tax (benefit) provision

(213

)

363

(1,454

)

851

Net (loss) income

$

(101

)

$

1,528

$

1,325

$

3,758

Net income per common share:

Basic

$

0.00

$

0.06

$

0.05

$

0.14

Diluted

$

0.00

$

0.06

$

0.05

$

0.14

Weighted average common shares:

Basic

25,274

25,849

25,545

26,057

Diluted

25,274

26,114

25,965

26,323

Digi International Inc.

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

Three months ended

Nine months ended

June 30,

June 30,

2014

2013

2014

2013

Net (loss) income

$

(101

)

$

1,528

$

1,325

$

3,758

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment

384

127

546

(3,252

)

Change in net unrealized (loss) gain on investments

(2

)

(13

)

62

(72

)

Less income tax benefit (provision)

1

5

(24

)

28

Other comprehensive income (loss), net of tax

383

119

584

(3,296

)

Comprehensive income

$

282

$

1,647

$

1,909

$

462

Digi International Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

June 30,

September 30,

2014

2013

ASSETS

Current assets:

Cash and cash equivalents

$

55,917

$

41,320

Marketable securities

32,329

47,006

Accounts receivable, net

24,654

26,829

Inventories

30,483

26,140

Deferred tax assets

3,464

3,174

Other

5,049

4,835

Total current assets

151,896

149,304

Marketable securities, long-term

12,338

17,389

Property, equipment and improvements, net

13,511

13,910

Identifiable intangible assets, net

7,557

9,728

Goodwill

104,329

103,569

Deferred tax assets

7,664

6,151

Other

437

221

Total assets

$

297,732

$

300,272

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

10,417

$

8,906

Accrued compensation

7,792

7,410

Accrued warranty

900

1,063

Other

2,349

3,911

Total current liabilities

21,458

21,290

Income taxes payable

2,392

3,903

Deferred tax liabilities

288

415

Other noncurrent liabilities

242

79

Total liabilities

24,380

25,687

Total stockholders’ equity

273,352

274,585

Total liabilities and stockholders’ equity

$

297,732

$

300,272

Digi International Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine months ended

June 30,

2014

2013

Operating activities:

Net income

$

1,325

$

3,758

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation of property, equipment and improvements

2,694

2,551

Amortization of identifiable intangible assets

2,787

3,326

Stock-based compensation

3,160

2,906

Excess tax benefits from stock-based compensation

(44

)

(60

)

Deferred income tax benefit

(2,033

)

(1,397

)

Bad debt/product return (recovery) provision

(196

)

616

Inventory obsolescence

610

759

Restructuring charges, net

81

(37

)

Other

(24

)

(109

)

Changes in operating assets and liabilities (net of acquisition)

(5,815

)

(4,205

)

Net cash provided by operating activities

2,545

8,108

Investing activities:

Purchase of marketable securities

(15,574

)

(49,121

)

Proceeds from maturities of marketable securities

35,364

51,773

Acquisition of business, net of cash acquired

—

(12,919

)

Purchase of property, equipment, improvements and certain other
intangible assets

Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions.
Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000.
Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...

The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016.
Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one.
In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...

Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...

SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...

With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications.
In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...

For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space.
In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...

There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness.
In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...

One of the hottest areas in cloud right now is DRaaS and related offerings.
In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.

In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions.
In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.

In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.

"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.

SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.

Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.

The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.

Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.

“Dad, if my character dies in the game, would I die in the real world?”
What a beautifully naive question that my son, Trevor, asked me during a son-dad conversation about how games might change over the years.
Earlier last year, Mattel’s CEO, Bryan Stockton, was fired. After three years, it was clear that Mattel was continuing to be challenged with sales weakness, and lower gross margins, which...

You often hear the two titles of "DevOps" and "Immutable Infrastructure" used independently.
In his session at DevOps Summit, John Willis, Technical Evangelist for Docker, covered the union between the two topics and why this is important. He provided an overview of Immutable Infrastructure then showed how an Immutable Continuous Delivery pipeline can be applied as a best practice for "DevOps." ...

The majority of an organization’s revenues are dependent on suppliers, distributors and other third parties. But as Benjamin M. Lawsky, New York State’s Superintendent of Financial Services, points out: “Unfortunately, those third-party firms can provide a back-door entrance to hackers who are seeking to steal sensitive bank customer data.”
By now most everyone is well aware of the major data bre...

The concept behind the Internet of Things has been around for a while now, ATMs being some of the first enterprise, hardened, network-connected, managed devices for mainstream consumer use. So too with our mobile phones, these are not new concepts to network technicians or hardware geeks. But for the rest of us, we simply never imagined the extents that the "ubiquity of connectedness" would take a...

Tableau Software and big data analytics platforms come together to provide visualization benefits for those seeking more than just crunched numbers.
The next BriefingsDirect big data innovation discussion highlights how Tableau Software and big data analytics platforms come together to provide visualization benefits for those seeking more than just crunched numbers. They're looking for ways to im...

Conservation International (CI) in Arlington, Virginia uses new technology to pursue more data about what's going on in tropical forests and other ecosystems around the world.
As a non-profit, they have a goal of a sustainable planet, but we're going to learn how they've learned to measure what was once unmeasurable -- and then to share that data to promote change and improvement.

Business and IT leaders today need better application delivery capabilities to support critical new innovation. But how often do you hear objections to improving application delivery like, "I can harden it against attack, but not on this timeline"; "I can make it better, but it will cost more"; "I can deliver faster, but not with these specs"; or "I can stay strong on cost control, but quality wil...

Do the ‘darker’ channels and means that exist for searching the web in anonymity ultimately spell doom for the wider march towards open data?
So-called ‘open data’ is supposed to be an instrument for breaking down information gaps across industries and letting companies share benchmarks and best practices that raise productivity – all information should be open and that should (theoretically) inc...

Learn how the IoT Cloud will power the world of tomorrow and why managing IoT through the cloud is as important as cloud computing itself. Learn how the devices of tomorrow will work on business models that reflect a new business strategy and a way to consume services.
In his session at @ThingsExpo, Ian Khan, Manager, Innovation & Marketing at Solgenia, will discuss how powered by the cloud and...

The Federal Government’s “Cloud First” policy mandates that agencies take full advantage of cloud computing benefits to maximize capacity utilization, improve IT flexibility and responsiveness, and minimize cost. The Federal Risk and Authorization Management Program (FedRAMP) is a mandatory government-wide program that provides a standardized approach to security assessment, authorization, and con...

Technology changes at the speed of light. To say it can be hard to keep up is an understatement. For performance engineers, taking charge of your own continuing education is one of the most important things you can do to remain at the top of your game.

JavaScript is primarily a client-based dynamic scripting language most commonly used within web browsers as client-side scripts to interact with the user, browser, and communicate asynchronously to servers.
If you have been part of any web-based development, odds are you have worked with JavaScript in one form or another. In this article, I'll focus on the aspects of JavaScript that are releva...

The Internet of Things (IoT) has quickly become the next “be all to end all” in information technology. Touted as how cloud computing will connect everyday things together, it is also feared as the real- life instantiation of The Terminator’s Skynet, where sentient robot team with an omnipresent and all-knowing entity that uses technology to control, and ultimately destroy, all of humanity.

Most developers learn best by examples, which naturally tend to simplify matters and omit things that aren’t essential for understanding. This means that the “Hello World” example, when used as starting point for an application, may be not suitable for production scenarios at all.
I started using Node.js like that and I have to confess that it took me almost two years to quantify the huge perform...

As a recent graduate, and now professor in the University of Connecticut's Business Analytics and Project Management masters program, I have a lot of conversations surrounding the topic of "Big Data" and questions such as, "What does that term actually mean?"
Big Data is a fairly new topic and what seems to be an elusive term for many. Conversations are important to help bring clarity to Big Data...

Knowledge management, in business terms, refers to saving, developing, sharing, and effectively using knowledge for the benefit of organization. It refers to a multi-disciplined approach of achieving organizational objectives by making the best use of knowledge.
Scientia potentia est (Latin proverb meaning "knowledge is power") attributed to 16th century philosopher Sir Francis Bacon is nowadays ...

It is interesting to me, how quickly the hype cycle of a good thing can turn it into a monster that will inevitably eat itself, leaving a much smaller – and much more useful – concept or toolset behind. It has happened over and over in high tech, one need only say “XML” to understand what I mean. It is definitely a useful tool for some jobs, but the “XML Everywhere” craze was insane. People declar...

As companies embrace the DevOps movement, they rely heavily on automation to improve the time to market for new features and services. DevOps is a long, never-ending journey with a goal of continuously improving the software delivery process, resulting in better products and services and, ultimately, happier customers. At the beginning of their DevOps journeys, many companies focus on continuous i...

We Need a Holistic Network Infrastructure: Why Controllers Are Not Cutting It
For years, we've relied too heavily on individual network functions or simplistic cloud controllers. However, they are no longer enough for today's modern cloud data center. Businesses need a comprehensive platform architecture in order to deliver a complete networking suite for IoT environment based on OpenStack.
In h...

Cloud computing budgets worldwide are reaching into the hundreds of billions of dollars, and no organization can survive long without some sort of cloud migration strategy. Each month brings new announcements, use cases, and success stories.